Category: Ice

The Norwegian Government has said it will not ban Huawei from providing network infrastructure equipment or services to fuel the drive towards 5G.

According to Reuters, Cabinet Minister Nikolai Astrup, the man who leads digital efforts across the government, has confirmed Huawei is free to operate in the country. While it is not the largest market for telco vendors, it is another positive sign that not everyone around the world will side with the US.

“We have a good dialogue with the companies on security, and then it is up to the companies themselves to choose suppliers,” said Astrup. “We haven’t got any bans against any suppliers in Norway.”

For Huawei executives, there will be a sigh of relief. Norway was one of the countries which was considering a ban on the grounds of national security, though this now appears to be a process designated to the past. It also demonstrates decisive action from a government; others around the world should take note.

Although Norwegian telcos fall into the fast-follower category for 5G deployment, they now have the advantage of certainty. Other countries, where services are already launched, do not have this confidence as decisions are still currently being made. The UK is a prime example of this.

The Supply Chain Review, on which Huawei’s hopes are pinned, is still under consideration. EE, Vodafone and Three might have already launched 5G services, though they are currently sitting in a state of purgatory. Without absolute confirmation of Huawei’s role in the UK’s digital infrastructure future, aggressive deployment plans are tricky. This is most apparent for Three and Vodafone, where Huawei is pencilled in to play a very significant role.

This dilemma is not present in Norway anymore. Telenor, Norway’s largest telco, plans to launch commercial 5G services in 2020 and can drive towards full-scale network deployment without any limitations on vendor selection from the government. We do not expect any single vendor will be a single-supplier, though it does have increased choice of suppliers compared to other nations.

Elsewhere in the Norwegian telco space, Telia and Ice will also be prepping themselves following the country’s first 5G spectrum auction in June. At the end of the auction, Telenor and Telia each walked away with two 10 MHz blocks 700 MHz spectrum, while Ice collected two 10 MHz blocks in 700 MHz and two 15 MHz lots in the 2100 MHz band. Further auctions are planning over the next few years, with the valuable 3.4-3.8 MHz and 26 GHz bands up for bid next year.

Looking at the relationships which are currently in place, Telenor and Telia have a partnership with Huawei, while Ice has elected to side with Scandinavian neighbour Nokia. Most recently, Telenor has been working with Huawei to trial 5G in the 26 GHz spectrum band, while Telia’s Swedish parent company signed a 5G MOU with Huawei in 2016. Both of the companies have Huawei equipment present in the 4G networks.

Ice is the smallest telco in Norway, it doesn’t have nation-wide coverage just yet, and has elected to work with Nokia. Nokia appears to be providing an end-to-end solution for the challenger telco, which is claiming to have already deployed 1000 5G-ready base stations in its network. Ice is an interesting telco to keep an eye-on, as while it is driving towards 5G connectivity, it still has a significant amount to invest to gain nation-wide coverage for its 4G network, which currently stands at 75% geographical coverage. This might not sound too bad, though when you consider the environmental challenges Norway’s landscape presents, it will be very difficult to improve this footprint quickly.

Another interesting element to consider here will be the impact this has on the relationship between the US and Norway. The US is continuing to pressure partners to place a ban on Huawei, and despite making progress in Poland, more countries are choosing to ignore the demands of the White House.

Looking at the Norwegian export statistics, you can see why the US does not have the same influence as it does with other states. Norway is the 36th largest export economy in the world and the 22nd most complex economy according to the Economic Complexity Index (ECI). Exports stood at $106 billion at the end of 2017, with crude petroleum and petroleum gas topping the list.

In terms of destinations, Europe accounted for 80% of all exports from the country, the UK led the way with 20%, while the US accounted for 4.7%. This is still a substantial number, though the US cannot force its will on the politicians in the same way.

Although the continued conflict between the US and China, in which Huawei is somewhat of a proxy for collateral damage, is causing discomfort for the vendor, it could be a lot worse. Worse case scenarios were drawn-up when the tension got to breaking point, though with numerous governments choosing to ignore the severity claims from the US, Huawei remains in a healthy(ish) position.